Demand for money as a store of wealth is called:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Speculative demand
People hold money as a store of wealth when they expect bond prices to fall. This is the speculative demand for money. Money held to make payments is the transaction demand.
NCERT (2026-27): Glossary: “Speculative demand - Demand for money as a store of wealth.” Glossary: “Transaction demand - Demand for money for carrying out transactions.” |